New York-Based Sponsor Announces 2014 Achievements
New York-based sponsor of equipment leasing programs SQN Capital Management, LLC (SQN) recently announced several key highlights of last year’s achievements. SQN says 2014 was “the most successful year in the firm’s history.”
Capital raise, investment deployment, an acquisition, an executive hire, a promotion, and liquidation all make the list of the company’s notable accomplishments.
Capital and Deployment
SQN raised over $250 million in 2014, across three fund offerings, which also includes SQN Asset Finance Income Fund Limited (the Fund), a closed-end collective investment fund that will invest in financing arrangements for equipment leasing assets across a diverse range of industries in the U.S. and the UK.
The Fund subsequently listed on the London Stock Exchange on July 14, 2014.
“We believe this to be the first publicly traded equipment lease and asset finance investment company traded on a major exchange. This marks a major achievement for both SQN as a company and for equipment leasing as an investment vehicle,” commented Jeremiah Silkowski, Chief Executive Officer of SQN in a statement.
Be sure to read Affiliate of SQN Capital Oversubscribes a Private Placement
During the month of December, the company deployed much of the raised capital and funded over $80 million in equity investments.
Acquisition
Summit Asset Management Limited (Summit Asset), a UK-based specialist leasing company and former joint venture partner to SQN, agreed to be acquired by the New York-based company. The transaction is expected to close this month.
According to SQN, acquiring Summit Asset provides “the platform and infrastructure to further expand internationally.”
People
As companies grow, so does the need for executive level leadership. With that in mind, SQN hired Claudine Aquillon as Chief Operating Officer to assist in the company’s future development. She brings over 25 years of experience in public and private sector operational roles including senior management and director positions with leasing companies, due diligence firms, and international banks. Ms. Aquillon participated in structuring several successful acquisitions during her career as well.
In other people moves, Michael Ponticello was promoted to President of SQN Securities, LLC, the broker-dealer for SQN Capital Management. Ponticello, who’s been with SQN since 2007, and his distribution team increased new subscription agreements by 117% and totally equity raised by 130% compared to the prior year. Notably, the average investment size increased by 5.7% as well.
Distribution
2014 started just as strong as it ended for SQN. The company provided investors in the SQN Alternative Investment Fund II, LLC a liquidation distribution, which put the internal rate of return (IRR) at 9.65% over the life of the fund.
With strong momentum leading into 2015 and little competition by way of equipment leasing sponsors in the advisor-sold, non-traded direct investment industry, SQN is a firm to watch.
